Service Tax on Canteen Services and Staff Transportation.

Service Tax - Started By: - Santosh Mali - Dated:- 28-5-2016 Last Replied Date:- 30-5-2016 - Dear All, We are manufacturer of Plastic Molded Parts of Motor Vehicle. Chapter heading 87089900. Our total employee including contractual are >250. Hence canteen facility to the workers is the statutory requirement under Section 46, of the Factories Act, 1956. Hence we are availing the service tax for canteen services provided. Caterer is third party who is preparing foods at his location and serves .....

lhi in the case of Hindustan Coca-Cola Beverages Pvt Ltd Versus CCE, Meerut-II, 2015 (10) TMI 2463 - CESTAT NEW DELHI has allowed the credit of outdoor canteen service. And there are other case laws as well. However, the arrangement as mentioned in your query as regard the caterer who prepares the food at his premises and brings into you factory premises to serve your employee is something not understood because as per Factories Act, 1948, the canteen should be within the factory premises. Even .....

ave impact on their contribution in the work. The efficiency is best when transport is arranged which ultimately boost production. Thus the input service is in or in relation to manufacturing activity and therefore credit should be allowed. Thanks. - Reply By KASTURI SETHI - The Reply = In support of the views of Sh.Ganeshan Kalyani, Sir, a case law is appended below:- C.C.E., CHENNAI-III Versus VISTEON POWERTRAIN CONTROL SYSTEMS (P) LTD. 2016 (41) S.T.R. 168 (Mad.) - 2015 (3) TMI 736 - MADRAS H .....

been settled, CENVAT credit of service tax paid on tour operator service is allowed. - Reply By Ganeshan Kalyani - The Reply = Sri Kasturi Sir thanks for reproducing the Judgment. This is of utmost important based on which querist can draft a reply letter. Thanks. - Reply By surya narayana - The Reply = Sirs,In my view, we need to consider the period of availing credit in terms of amended definition and the exclusion clauses, though the case law cited decided in favour of assessee since they re .....